Bangalore, the 27th largest city on the globe, is making a mark with its study abroad aspirants. A number of students from here are making their way for studying abroad in some of the reputed colleges. That is why, in this article, the experts will address one of the major factors affecting this decision, i.e., finance. With the help of this article, you will be able to successfully apply for a student loan to aid with your finances. So, let’s see what experts from overseas education consultants in Bangalore have to say about it.
What Are Student Loans for Studying Abroad?
There are many students in Bangalore who want to pursue their higher studies from abroad. However, it is not a cheap process. A lot of money is needed to study in a foreign college. This is where a study loan comes into play. The term loan refers to the amount you borrow from the lenders for your studies. These loans help learners with expenses like airfare, tuition and lodging. They further make studying abroad affordable for scholars. Let’s know about the kinds of loans you can avail of.
Types of Study Loans in India
As per Bangalore experts, before you apply for a study loan, you need to be aware of the different types of loans that are available to you. It is vital that you know how they differ from each other. Further, you also need to analyse which will be suitable according to your needs. The following are two groups in which you can majorly divide the different loans:
Secured
The following are the facets of a secured loan:
- Lower interest rates
- The repaying period is longer
- Students need to provide collateral. For example, FD, insurance policy, etc.
- Higher approval rate and loan amount
- The income of parents is not crucial for approval
- Repayment after the study program is completed
Unsecured
These are a few aspects of the unsecured loans:
- You need not provide any type of collateral
- The interest rates are higher
- The period for repayment is short. Sometimes, students need to repay while they are studying.
- For approval, you need parental income.
Next are the steps that you can follow to apply for a loan.
Easy Steps to Apply for a Study Loan
The process of applying for a loan for higher studies can be tedious for many students. They further get confused with the various records and steps that are involved in the application procedure. That is why it is crucial that they seek guidance from the experts at the overseas education consultants in Bangalore city. The following are some simple steps suggested by them that can help you in getting your study loan.
Research and Compare
First, search about the various options available to you. Compare them on the basis of their processing fee, offers and more. Moreover, review the eligibility and other requisites for it.
Gather Documents
Before applying for a loan, gather all the records like mark sheets, and test scores. In addition, a copy of the offer letter from the college should also be there. Enquire for any additional records as well.
Prepare Application
The loan application for studying abroad should be well prepared. Highlight your scholarly attainments and the budget plan. Also, include the projected earnings that you will get after completing the course.
Submit Application
As per Bangalore experts, when you are submitting the form, ensure that all details are accurate and legitimate. In addition, attach all the papers with your form for a study loan.
Evaluation
This process includes analysis of the credit history, scholarly setting and stability in terms of money. It can further take two to four weeks.
Next, let’s explore the different types of money-lending bodies.
Types of Lenders for Student Loans
If you are planning to apply for a loan for studying abroad then there are three types of lenders available to you. These include the following:
- Banks: There are several private and public banks that provide students with the loans essential for studying overseas.
- NBFCs: These are non-banking firms that provide monetary services. Meanwhile, only difference is that they do not have a banking license.
- International lenders: These are firms from outside India that offer services to global students.
Conclusion
To sum up, a study loan can be a useful way to finance your study abroad trip. However, before applying make sure to check every aspect of the loan. Other than that if you need any help with your loan application you can consult Gradding.com. It is one of the best consultancy for study abroad services. For example, visa or housing assistance. In addition, they also provide financial aid in the form of cashback and free flight tickets.
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